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Fall in pulses price keeps rise modest; housing, fuel up.

Last month, the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) forecasted that retail inflation will hover around 4.2-4.6 percent between October-March this year, higher than the previous projection of 4-4.5 percent.

According to the data furnished by the Ministry of Statistics and Programme Implementation, October's consumer price index (CPI) inflation rose to 3.58 per cent from 3.28 per cent in September. The Reserve Bank of India targets a retail inflation rate of 4%, with a tolerance band of 2%-6%.

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While the inflation for food and beverages rose to a seven month high of 2.3 per cent in October 2017, the core-CPI inflation remained steady at 4.6 per cent.

Vegetables prices witnessed a negative growth of 3.77 percent in October as compared with 4 percent in September.

The overall food prices, as gauged by the Consumer Food Price Index (CFPI), rose to 1.90 per cent during the month under review from 1.25 per cent in September 2017.

Some analysts expect the GST Council's decision on Friday to slash tax rates on 178 items to 18 per cent from 28 per cent could marginally lower retail inflation in coming months.

RBI said that inflation is expected to rise from its current level and range between 4.2-4.6% in the second half of this year, including the house rent allowance by the Centre.

People bore the brunt of higher vegetable prices.

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Retail inflation has been steadily rising since June, when it eased to 1.46 per cent - its slowest pace since India started releasing such figures in January 2012, based on combined data for rural and urban consumers.